Buying a Sport Clips franchise: SBA acquisition loan data
Since FY2018, SBA lenders have approved 17 7(a) loans to buy an existing Sport Clips (classified mostly as Barber Shops), totaling $20.9M. The median loan was $988,000, 53% higher than the $645,250 median for all SBA-financed acquisitions. 3 of these loans were approved in the last two fiscal years.
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What this tells a buyer
- Price range to expect. Loan size tracks purchase price. Half of Sport Clips resale loans landed between $216,000 and $1,663,000.
- Lender experience exists. Live Oak Banking Company alone has financed 7 Sport Clips resales.
- Guaranty. The SBA guaranteed 77% of the dollars lent here.
- What the file leaves out. The SBA file does not record franchisor transfer terms or fees.
Financing a Sport Clips resale
The median SBA 7(a) loan for a Sport Clips resale was $988,000 across 17 loans (FY2018 to FY2026). Live Oak Banking Company, Simmons Bank and Village Bank and Trust, National Association have financed the most Sport Clips resales. Too few of these loans are old enough to measure a charge-off rate; the average for all SBA acquisition loans is 3.5%.
Sport Clips acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 3 | $1.4M | $216,000 | |
| FY2019 | 2 | $2.1M | $1,049,000 | |
| FY2020 | 0 | $0 | - | |
| FY2021 | 6 | $7.8M | $851,750 | |
| FY2022 | 1 | $1.3M | $1,280,000 | |
| FY2023 | 1 | $1M | $1,000,000 | |
| FY2024 | 1 | $1.7M | $1,663,000 | |
| FY2025 | 0 | $0 | - | |
| FY2026 | 3 | $5.7M | $2,257,200 |
How often do these acquisition loans fail?
Fewer than 20 Sport Clips acquisition loans are old enough to measure losses reliably, so no charge-off rate is shown. The benchmark across all SBA acquisition loans in the FY2018 to FY2021 cohort is 3.5% by count. Non-acquisition 7(a) loans (every other stated purpose) approved FY2018 to FY2021 charged off at 6.2%.
"Charged off" is the SBA's final loss action on a defaulted loan after collection efforts. It lags default by a year or more, which is why only older cohorts are measured. It is not the same as a delinquency rate, and loans still outstanding can still fail. See charge-off in the glossary.
Seller note standby terms and third-party consents are reviewed before closing.
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Lenders financing Sport Clips resales
| # | Lender | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Live Oak Banking Company | 7 | 41.2% | $9.3M | |
| 2 | Simmons Bank | 3 | 17.6% | $538K | |
| 3 | Village Bank and Trust, National Association | 2 | 11.8% | $5.1M | |
| 4 | PNC Bank, National Association | 1 | 5.9% | $2.3M | |
| 5 | First Western Trust Bank | 1 | 5.9% | $1.7M | |
| 6 | SouthState Bank, National Association | 1 | 5.9% | $988K | |
| 7 | Happen Bank | 1 | 5.9% | $884K | |
| 8 | Coulee Bank | 1 | 5.9% | $123K |
States where Sport Clips units are bought
| # | State | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Illinois | 3 | 17.6% | $5.1M | |
| 2 | Texas | 3 | 17.6% | $2.7M | |
| 3 | North Carolina | 2 | 11.8% | $2.1M | |
| 4 | Wisconsin | 2 | 11.8% | $2.1M | |
| 5 | Minnesota | 1 | 5.9% | $4.2M | |
| 6 | Pennsylvania | 1 | 5.9% | $2.3M | |
| 7 | Colorado | 1 | 5.9% | $1.7M | |
| 8 | Washington | 1 | 5.9% | $350K | |
| 9 | Utah | 1 | 5.9% | $216K | |
| 10 | South Carolina | 1 | 5.9% | $172K |
The purchase agreement decides what you bought, not the loan approval.
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How lenders classify Sport Clips
Lenders code each loan to a NAICS industry. For Sport Clips the codes used were:
| # | Industry | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Barber Shops | 10 | 58.8% | $18.8M | |
| 2 | Beauty Salons | 5 | 29.4% | $1.7M | |
| 3 | Other Personal Care Services | 1 | 5.9% | $216K | |
| 4 | All Other Personal Services | 1 | 5.9% | $172K |
Questions buyers ask
How much do buyers borrow to buy a Sport Clips franchise?
The median SBA 7(a) loan for a Sport Clips resale was $988,000 across 17 loans (FY2018 to FY2026). The middle half of loans ran from $216,000 to $1,663,000. The loan excludes the buyer's equity and any seller note and may include working capital, so the price is usually higher than the loan.
Which banks finance Sport Clips acquisitions?
Live Oak Banking Company has made the most SBA acquisition loans for Sport Clips (7, 41% of the total). Simmons Bank, Village Bank and Trust, National Association, PNC Bank, National Association follow.
What interest rate and term do Sport Clips acquisition loans carry?
The average initial rate at approval was 6.87% (a blend of fixed and variable loans across several rate environments, so treat it as context, not a quote). The median term was 10 years.
Is a Sport Clips resale riskier than other SBA-financed acquisitions?
Too few Sport Clips acquisition loans are old enough to measure. The benchmark for all SBA acquisition loans is 3.5% charged off in the FY2018 to FY2021 cohort.
Where are Sport Clips units being bought with SBA loans?
Illinois (3), Texas (3), North Carolina (2), Wisconsin (2), Minnesota (1). State counts follow where the brand has units and where SBA lending is most active generally; see the state pages for the overall picture.
That draft favors the seller. We review it for the buyer, line by line.
Submit Transaction DetailsAlex Lubyansky leads every engagement.
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Related
- All Barber Shops acquisitions
- Illinois acquisitions
- Texas acquisitions
- North Carolina acquisitions
- Live Oak Banking Company
- Simmons Bank
- Village Bank and Trust, National Association
- All franchise brands
Brand name as recorded by lenders in the SBA file: "Sport Clips" (franchise code S2521). Figures are aggregates of public SBA data and are not provided or endorsed by the franchisor.